Double Movement,Globalization, and the Crisis

This article asks whether the process of financial globalization and its recent crisis can be explained by Karl Polanyi's notion of the double movement and argues, in tune with this notion, that capitalist market relations depend on certain institutional arrangements and yet the development of the market forces deteriorates these institutions' arrangements to such extent that even the “capitalist business itself had to be sheltered from the unrestricted working of the market mechanism” (Polanyi 1944: 193).     

Saving the Commons in an Age of Plunder

Land ownership, as commonly understood today, originated with the enclosure movement during the English Tudor era almost four centuries ago. Karl Polanyi referred to this “propertization” of nature as the “great transformation.” That land, water, and air was a social commons is now archaic and forgotten, and with it the classical economic concept of rent, which was, in theory, once paid to royalty as the earth's guardian. Garrett Hardin's article, “The Tragedy of the Commons,” raised alarm about the abuse and loss of this realm, and he recommended constraints and privatization to prevent this. Most people view titles to landed property much as they do their household goods, but Henry George saw that the earth should be seen as a common resource and its value taxed to benefit everyone. This would restore economic equilibrium to market exchanges and pay for government services. The capture of natural resource rents can supplant taxes on wages and capital goods, and it comports with all textbook principles of sound tax theory. This policy can be the modern replacement for the commons, and implementing resource rent capture is both economically and technically feasible.     

Toward a circular economy: Understanding consumers' moral stance on corporations' and individuals' responsibilities in creating a circular fashion economy

For long, the fashion industry has adopted the linear economy's “take-make-use-throwaway” system, an approach that has adverse side effects, such as economic loss, environmental destruction, and threats to human society. To address these adverse consequences from fashion's linear system, governments and business leaders are advocating the societal need for a shift from the linear economy to the circular economy, which endorses the “take-make-use-reuse” system. Despite the growing demand for changing to a circular economy in the fashion business (circular fashion [CF]), two critical issues remain understudied in the current literature. First, although academic research on CF has increased in the past 5 years, the lack of scalable CF research has hindered the industry's ability to increase its adoption of a truly circular economy. Second, although the fashion industry faces complex challenges in instituting CF in that just one supply chain member's (a fashion retailer's) commitment is not sufficient to create a truly CF without the involvement of others (consumers), there is yet no empirical research that investigates whether consumers morally support the idea of a CF and feel obliged to take part in fashion businesses' CF offerings. Thus, we investigate whether and how morally grounded traits—corporate moral responsibility (H1+), consumer moral responsibility (H2+), their interaction effect (H3), and corporate hypocrisy (H4−)—influence consumers' attitudes and engagement (H5+) toward fashion corporations' CF offerings. Our empirical evidence, using a U.S. consumer survey dataset of 351 responses, shows that all of these hypotheses are supported. The results provide important theoretical and managerial implications.     

The Political Economy of Confucian Harmony: A Xunzian Vision

A global market economy of pure instrumental rationality now poses a growing threat, jeopardizing common citizenship, the capacity for human flourishing, and harmony between humans and nature. Growing skepticism about the sustainability of market capitalism and its moral legitimacy propels us to search for a new economic model in which humans are no longer held hostage to the unbridled pursuit of self‐interest and limitless possession at the expense of the well‐being of others and nature and that attempts to overcome the old conflict between capitalism and socialism. We can call this alternative model “moral economy,” an economic system that reconciles private interests with the public good broadly construed. In this article I reconstruct the Confucian ideal of moral economy by paying close attention to Xunzi's ethical and political thought. Xunzi, one of the key classical Confucians, stipulates the threshold of sufficiency by extending the ruler's care to the most destitute of society as well as giving moral priority to their basic needs without dismissing the foundational importance of individual merit and contribution. Rejecting both pure economic meritocracy and dogmatic egalitarianism, Xunzian Confucianism aims to create a political economy of harmony where various distributive values (need, equality, and merit, among other things) each have their own place.     

China's Approach to Social Market Economics: The Chinese variant of Market Socialism Seeks to Escape from the Difficulties of Central Command Planning

Abstract . The paradigm of a social market economy provides a rational basis for resolving structural socioeconomic changes, as presently evidenced in the People's Republic of China. China's approach to socioeconomic change, labeled as “Socialism with Chinese Characteristics,” resembles a modified version of Eucken's paradigm of a social market economy.¹ The Chinese paradigm, leaning on that of Walter Eucken, provides for a “limited”free market, which not only accommodates economic growth and change, but which also makes allowance for some degree of human, especially economic freedom, and dignity. Eucken's model is based on a sound institutional and legal framework which he considered to be essential for a viable modern market economy. China's new socioeconomic program is moving the country in this direction. It takes into account people's desire for a useful and Just socioeconomic order (however defined), characterized by stable socioeconomic and political policies and by a flexible price mechanism, to enable them to live a life in dignity, free of economic deprivation.     

Analysis of the cross-region risk contagion effect in stock market based on volatility spillover networks: Evidence from China

This article uses the stock market regional indexes of 31 provinces (include Province-level municipalities and Minority Autonomous Regions) in mainland China as a sample, and constructs an inter-regional volatility spillover network of China’s stock market based on the GARCH-BEKK model. Through network centrality analysis, Diebold and Yilmaz's spillover index method and block model analysis, we comprehensively analyze the risk contagion effect among different regions in China’s stock market. The empirical results show that: (i) The risk contagion intensity (risk reception intensity) in various regions of China’s stock market has a typical “core-periphery” distribution characteristic due to regions’ different levels of economic development. (ii) There are obvious risk spillover effect in China’s stock market, among which the economically developed regions along the southeastern coast of China, such as Beijing, Shanghai, Zhejiang and Jiangsu, are the main risk transmitters, while the economically undeveloped regions in the Midwest of China, such as Xinjiang, Xizang, Gansu, Nei Menggu and Qinghai are the main risk receivers. (iii) Each region is divided into 4 blocks according to their respective roles in the risk spillover process in China’s stock market. Block 1 that is composed of the economically underdeveloped regions in the Midwest is the “main benefit block”, it acts as a “receiver”. Block 2 that is composed of regions with strong economic growth vitality in the Midwest is a “Bilateral spillover block”, it both plays the role of “receiver” and “transmitter”. Block 3 that is composed of developed regions along the southeast coast, it acts as a “transmitter”; Block 4 that is composed of the relatively fast-growing regions in the Southwest is the “brokers block”, it serves as a “bridge”. The results of this article can provide some reference for investors in financial institutions and decision makers in financial regulators.     

Capitalism,Meritocracy, and Social Stratification: A Radical Reformulation of the Davis‐Moore Thesis

This article advances a reconceptualization of the Davis‐Moore thesis, which adresses the weaknesses of Davis and Moore's original formulation and can function not as a causal explanation of inequality but as a normative yardstick, against which the efficiency of capitalist society's use of human talents can be measured. I argue that the nonmeritocratic nature of capitalist society prevents it from using human talents efficiently and that this fact is obscured by a “meritocratic illusion” that is systematically generated by the structural logic of capitalist society. After briefly exploring one way in which capitalism's ecological contradictions impinge on the Davis‐Moore thesis, I conclude by arguing that it is the mediation of capitalism's contradictions through social struggles that will determine whether a more meritocratic society consistent with the reconceptualized version of the Davis‐Moore thesis will ever emerge.     

Between Rules and Incentives: Uncovering Hayek's Moral Economy

This article uncovers Hayek's moral economy. It focuses on the relation between markets, as well as on the nonmarket institutions on which the former rely, and the motivations that guide individuals' behavior. Despite his epistemological admonitions, Hayek has a rich set of suggestions about the functional importance of particular individuals' motivation and moral makeup for the development of a market society. This contributes to undermine his claims that a market society can be neutral among different values.     

Catholicism and Economics: Towards a “Deeper Reflection on the Nature of the Economy and its Purposes”

Many of the problems neoclassical economic theory has in explaining the real world stem from its narrow view of human nature—the “rational economic man” model, which forces economists to exclude social and historical context. Every social theory starts with a view of human nature that necessarily comes from outside the social sciences. Philosophy and theology are the sources of our ideas about the nature of humans, society, and the good that humans pursue. Catholic Social Thought has a rich understanding of human nature, which includes both the uniqueness of persons and their inherently social nature. Starting from this foundation, economists can develop a deeper understanding of the nature of the economy. Catholic Social Thought does not offer a different economic theory or model, but it does provide an alternative vision upon which more adequate and realistic economic theories can be constructed.     

The professional manager of the future

It's just possible that a businessman's role in the year 2000 will erode seriously due to little involvement in the growing “leisure values” of an affluent culture and failure to contribute directly to the needs of what will be a strongly post-industrial society. But if we want to train managers who are able to meet the needs and interests of the wider community, how do we prepare them for something as conceptual as “social responsibility”? Is it enough to superimpose on the business curriculum some courses in the social, political or technical-environmental forces affecting the individual and his firm, i.e. make the student study more and longer before he becomes an operative “professional”?     

The Organization,Operation, and Outcomes of Actually Existing Markets: A Suggested Approach for Empirical Analysis

Public policies have become embedded with market‐based mechanisms to radically transform essential goods and services markets. This article proposes a framework for empirical analysis of these markets. Key theoretical propositions are distilled to 12 distinctive properties of markets. These properties foreshadow a set of questions to interrogate a market's structure, operation, participants, behaviors, rules, and price setting to generate a substantive, realistic picture of outcomes. This “analytical grid” of questions is applied to four Australian essential goods and services markets. The findings unequivocally demonstrate a very different picture of markets from that promulgated by mainstream neoclassical economics and public policies.     

哈维的空间理论辨析及对中国空间发展的启示

大卫 哈维的空间理论主要包括“空间修复”“空间正义”和“生态社会主义”思想。哈维的空间理论直指资本主义制度的弊端,开创了当代研究马克思主义地理空间理论的新视角,在一定程度上应该且能够为构建中国特色社会主义空间发展理论所借鉴。满足人的全面发展需要的“空间发展”是克服资本逻辑下的“空间修复”的必然选择,中国特色社会主义的空间发展,必将真正体现出以人民为中心的空间发展理念,从根本上克服资本逻辑对空间生产、空间正义以及生态环境的控制,真正实现空间正义可持续发展下的人与人、人与社会、人与自然的和谐统一,走出一条不同于西方国家被资本所支配的发展道路。     

Eric Voegelin,Reflexive Distance,and Harnessing the Benefits of Metaxy: The Leader's Imperative to Participate in History and Becoming

The capacity to lead consciously is connected to the leader's knowledge of the self and one's environment. Eric Voegelin stipulated that gaining reflexive distance through comparative historical knowledge allowed for a deeper understanding of an individual's place in society. Citing his works, the current article explains the utility to leaders in understanding historiography, confronting narratives of the past, and criticizing previous normative structures. Leaders come to understand their place in the process of “becoming” by confronting the past. Harnessing the capacity to reflect, leaders can use history as a mirror to demand more of themselves and followers. Moreover, as leaders come to comprehend symbols of mankind's attempt to make sense of the universe and to establish some degree of order, disruptions to the “order” can paradoxically manifest growth. Conscious leaders thus become adaptive rather than reactive.     

Technologies in transition,policies in transition: foresight in the risk society

The emergence of formal Foresight programmes in science policy across Europe is examined in terms of government's response to the changes in, and especially the uncertainties of, contemporary innovation. The paper explores this through deploying Beck's notion of the “risk society”, asking how far Foresight can be construed as the management of new technologies by the transition towards the “negotiation state”. It shows how, through a discussion of the social management of new health technologies, a tension arises between the priorities and regimes of the new “negotiation” and those of the former “provident” (or welfare) state. The emergence of new technologies will be shaped by the institutional assumptions and processes operating within the different policy regimes.     

Towards a Personal Knowledge of Economic History

A bstract . Our intellectual heritage from the Polanyi Brother: Michael, the scientist-philosopher, and karl, the economic historian, is explicated. Michael Polanyi's Post-critical philosophy of personal Knowledge is explained and analyzed.
Michael Polanyi applied his philosophy to develop a powerful historical epistemology and methodology. The classic economic history. The Great Transformation , by Karl Polanyi is analyzed and interpreted as a prototypical example of a historical work which utilized and applied Michael Polanyi's historical epistemology and methodology. It is concluded that the Polanyi Brothers have developed a powerful historical epistemology and have applied their methodology to expand historical knowledge beyond the limits of the "new" economic history.     

Self-renewal of the Japanese firm and the human resource strategy

Traditional “Japanese personnel management” that has long been considered as the key for Japan's competitive success now needs fundamental restructuring in order to meet the challenges of a stagnant economy, matured domestic market, and the rise of NICs (Newly Industrialized Countries) in international markets. The self-renewal of Japanese firms can be achieved by a paradigm shift at the corporate strategy level: from a production orientation to a product orientation. In accordance with this paradigm shift, leading Japanese firms have started reforming their Human Resource Management (HRM) function from a productivity-centered to a creativity-centered one— creative HRM. Creative HRM has three pillars: (1) the creation of the strategic vision through commitment of the employees, (2) an entrepreneurial middle management as a key strategic node, and (3) multi-dimensional personnel management. Creation and realization of the strategic vision through the active commitment of an entrepreneurial middle management is necessary for the self-renewal of the firm. “Japanese Personnel Management” that might have been overadapted to the traditional strategic paradigm is now transforming itself from a “group-centered” personnel administration to an “individual-centered” one. While Western companies have been adopting Japanese “groupism” to reconstruct their production systems, Japanese companies have started introducing Western “individualism” to encourage creative self-transformation. But no system or technique is truly effective without human commitment, and this requires a fundamental paradigm shift for Japanese firms.     

1. Globalization and Violence: The Challenge to Ethics

Despite its many benefits, globalization has proven to harbor a good deal of violence. This is not only a matter of the proliferation of weapons of mass destruction inaugurated by the atomic bombing of Hiroshima, but includes many forms of indirect or “structural violence” resulting from the routine of economic and political institutions on the global scale. In this essay, the multifaceted phenomena of violence are approached from the standpoint of ethics. The prevailing political thinking associated with “realism” fails to address the problems of militarism and of hegemonic unilateralism. In contrast, many philosophers are critically rethinking the problem of global violence from different ethical perspectives. Despite sharing similar concerns, philosophers nevertheless differ over the role of philosophical reflection and the potentials of reason. These differences appear in two contrasting approaches associated with postmodern philosophy and discourse ethics. In the analysis of discourse ethics, attention is paid to Karl‐Otto Apel's attempt of philosophically grounding a macroethics of planetary co‐responsibility. At the heart of the essay is the analysis of the problem of violence, including terrorism, by Jürgen Habermas, who explains the phenomenon of violence in terms of the theory of communicative action as the breakdown of communication. Jacques Derrida's deconstruction of the notion of “terrorism” also is analyzed. According to the principle of discourse ethics, all conflicts between human beings ought to be settled in a way free of violence, through discourses and negotiations. These philosophers conclude that the reliance on force does not solve social and global problems, including those that are the source of violence. The only viable alternative is the “dialogical” multilateral relations of peaceful coexistence and cooperation among the nations for solving social and global problems. They emphasize the necessity of strengthening the international rule of law and institutions, such as a reformed United Nations.     

The Immoral Economy of Housing in Turkey

This paper presents an examination of the political, social and economic coordinates of informal housing in Turkey within an analytical framework in which the complex interaction between the organizing principles of reciprocity, redistribution and exchange is taken into account. The discussion is centered on two ideas: (1) both redistribution and reciprocity incorporate a moral principle which can be defined as ‘the unequal treatment of the unequal’ as opposed to the moral neutrality of market exchange which takes place between formally equal trading partners; and (2) in certain contexts where redistributive processes are not institutionalized in a rule-based, depersonalized manner but involve relations which take place within informal networks of reciprocity, the element of moral relativity that forms their basis might lead to situations where they lose their legitimacy and generate negative social consequences. The paper thus introduces a moral dimension into the discussion of informal sector activity by complementing Karl Polanyi's approach with Marshall Sahlins' typology of different types of reciprocity and shows that particular systems of redistribution might lead to the emergence of forms of negative reciprocity which shape both the market and the political process in a highly undesirable manner. Cet article présente un examen des coordonnées politiques, sociales et économiques du logement informel en Turquie, utilisant un modèle analytique dans lequel l'influence mutuelle entre les principes d'organisation, de réciprocité, de redistribution et d'échange, est prise en considération. La discussion porte sur deux idées: (1) la redistribution et la réciprocité comprennent toutes deux un principe moral qui peut être défini comme ‘le traitement inégal de l'inégal’, par opposition à la moralité neutre de l'échange de marché qui prend place entre des partenaires de commerce formellement égaux; et (2) dans certains contextes, lorsque les processus redistributifs ne sont pas institutionnalisés d'une façon formelle et impersonnelle mais incluent des relations qui prennent place dans des réseaux informels de reciprocité, l'élément de relativité morale qui forme leur base pourrait conduire à des situations où ils perdraient leur légitimité et auraient des conséquences sociales négatives. Cet article introduit donc une dimension morale à la discussion de l'activité du secteur informel en complémentant l'approche de Karl Polanyi avec la typologie des différents types de réciprocité de Marshall Sahlins, et montre que certains syst èmes de redistribution pourraient conduire à la naissance de formes de réciprocité négatives qui modèleraient de manière hautement indésirable et le processus du marché et le processus politique.     

Earnings Management and the Accrual Anomaly: Evidence from China

Using the unique Chinese setting in which the “delisting regulation” is based on accounting numbers, we separate earnings management into (1) earnings management responding to regulation and (2) earnings management prompted by market pressures and further document that earnings management responding to market pressures produces the accrual anomaly (Sloan, 1996) and earnings management responding to regulation does not. Initially unable to detect the accrual anomaly in China's stock market, we were reluctant to conclude that China's market is more efficient than that in the United States. After observing a disproportionate number of “big‐bath” loss firm‐years in the lowest decile of accruals for our sample, we estimated the apparent earnings distortion induced by the delisting regulation. When we excluded this distortion from our analysis, we documented the presence of the accrual anomaly in China's stock market. We conclude that the delisting regulation creates an artificial distribution of firm earnings in China that affects the market pricing of accruals and masks the accrual anomaly. The results have implications for policy makers and regulators in general, and those in emerging markets in particular.     

Bourgeoisie Out, Expertoisie In: The New Political Economies at Loggerheads

Part I of our paper pinpoints the “political” in the new political economies: first, the distinction between political, public, and civic economies that are almost invariably confused; second, the role of power politics, force, and fraud in determining income differentials in the name of market forces. Part II pinpoints the “new” in twentieth‐century political economies: first, the emergence of a fourth factor of production in addition to labor, capital, and land, whether identified with organization, knowledge, headwork, education, brainpower, management, or information; second, the subordination of capital to this new factor; third, the formation of a new social class based on its ownership; fourth, the struggle between the owners of capital and the new class for control over decision making and for the lion's share in distribution; fifth, the reliance on government to protect and advance the interests of the new class of professionals; and sixth, the eclipse of the old class struggle between bourgeoisie and proletarians by a new class struggle between managers and managed, executives and executants, “knows” and “know‐nots.” Part III pinpoints the “loggerheads” or sources of dissension between the “human capital” and post‐capitalist variants of the new political economies: first, over whether the expertoisie constitute a new social class or a fraction of the bourgeoisie; second, over whether the new economic order constitutes an advanced stage of capitalism or the advent of a post‐capitalist society; and third, whether the “knows” exploit the “know‐nots” through their monopoly of economic and political power. Why “political,” why “new,” and why “at loggerheads”? Our essay divides into three parts our tentative answers to these questions.